unsecured loan help needed!

hatebanksalot

Hi All

Please someone help! I will try to keep this as brief as possible.

I am looking for a small unsecured loan of 3 or 4 thousand pounds to pay back back over a period of 1 or 2 years maximum.

I am a homeowner who has owned and lived in my house for 8 years. My house is worth £120.000 and I have £75.000 left on the mortgage to pay. £45.000 equity.

My credit score with Experian says it is 750 - a score of fair. I only have 2 late payments in the last 2 years (only a few days late) and no CCJs etc. I can't understand why my credit score is not in the excellent or at least good catagory. It was in the good catagory until recently when my credit card balances maxed out.

I am self employed and have bank statements showing payments of 2008 -9 = £48.000, 2009 - 10 = 45.000, 2010 - 11 = £38.000. (I also have accounts to show this but would rather NOT use them as my net profit is considerably less than my gross profit and many lenders tend to want those figures and not the gross.)

I have 3 credit cards almost up to their limits of £6.500 total. (£300 payments each month) I also have a secured loan of £2800 outstanding (£650 per month)and a bank loan with £1000 outstanding (£160 per month) BOTH of which will be finished next April.

Work is sparce at the moment, I am getting monthly incomes of around £1500 - £2500 per month, and will be for the next few months, which is just enough to pay my monthly debts /bills and living expenses of about £2200. I also owe my brother £1000 and want to pay this off ASAP. So I could do with the loan to "ease" things over the next few months.

Once my loans are paid off in April that will save me over £800 a month. I then intend to pay my credit cards off and be debt free in a couple of years. (I have spent the last 10 years paying off debts of £60.000. I only have about £15.000 to go now. ) I would apply for a balance transfer cradit card but from what I can gather these are only available to people with good credit.)

From what I can gather, the best loan deals are not available to me like Sainsburys, Alliance and Leicester etc. I have tried online searching for something suitable for me but it just gets more confusing. All I tend to get back is text messages and emails from companies with crazy interest rates and a million questions or forms to fill out. Many of them also want a gaurantor.
.

I don't see why I have to get someone else involved to act as a gaurantor. My annual wage is above average, I have proof of my earnings and I am a homeowner. I should be acting as a gaurantor to somebody else! The amount I am asking is miniscule compared to what I make working but would be a big help temporarily.

Now I am getting phone calls from Debt management companies and brokers who want an upfront fee. Every loan company name I get I read internet revues on and it seems they are to be avoided at all costs. My bank (HSBC) will not help me out in any way before someone asks. Becuase I have a loan with them they refuse to allow me to have use of any other of their "services" until it is paid in full - Thanks HSBC, I've only been with you for 25 years and have had ALL my wages paid into your bank ever since....)

What can I do?

If there is anyone out there who has had a similar experience and has found a solution, or someone who knows of a loan company that may be right for my situation and credentials, then PLEASE get back to me!

There must be someone out there who can lend a law abiding, hard working, equity holding, honest British citizen a small amount of money without having to go through gaurantours, accounts, valuations, endless daft questions and paperwork, up front payments, premium rate phone calls and basically having to deal with crooks?!

Any advice would be greatly appreciated.

Thank You

Craig

RichGold

hatebanksalot wrote: »

There must be someone out there who can lend a law abiding, hard working, equity holding, honest British citizen a small amount of money without having to go through gaurantours, accounts, valuations, endless daft questions and paperwork?!

There were people who would do that, but then people took advantage, and now there aren't people who will do that.

The least they will want are your accounts.

opinions4u

You max out your cards.

You don't pay on time.

You appear to have a falling income and admit "Work is sparce at the moment".

Would you lend money to a person in that situation?

Cut your spending. Don't borrow.

Tixy

First stop filling in your details on websites - do not sign up to any loans online or loan brokers, do not sign up to a commercial DMP company that contacts you (if a DMP is the right thing for you then go to one of the charities). Don't go for a loan with a guarantor (even if you can find a guarantor they would be better to take out a loan in their name and loan the money to you).

Right so you are self-employed and your sales are £38k? and a homeowner? What is your net profit before tax? that is your income and the relevant figure to anyone looking to lend you money.

I'd guess that its probably not more than £25k and you currently already owe £15k, in which case any lender will consider you already have too much debt compared to your income.

If you've recently maxed out your cards and your own bank won't lend to you then I would think you have little chance of securing an additional loan from anywhere. You've already said you are barely getting enough money to pay your debts and living expenses - which would imply you don't have anything left to make repayments to a new loan.

I think you need to rethink - instead of trying to get another loan on top of your existing debts I would look instead to see how you can manage your finances until you get through to April. Maybe head over to the debt free wannabe board to get some advice and suggestions on reducing your living costs to see you through this period.

tell_it_how_it_is

To be honest, IMHO, as Tixy says, with towards £15k of debt perhaps a closer look at your money management is more in order than another loan i.e. what "essentials" can you do without over the next few months to ease the load? From what you've said, I wouldn't personally be wanting to lend to you. And sometimes, you've just gotta accept that another loan is not the answer, and that you really need to be brutal!

But one other option if a loan really is a necessity - have you looked into the possibility of adding it onto your mortgage?

hatebanksalot

opinions4u wrote: »

You max out your cards.

You don't pay on time.

You appear to have a falling income and admit "Work is sparce at the moment".

Would you lend money to a person in that situation?

Cut your spending. Don't borrow.

Opinions4u

I appreciate you reading my post and taking time to reply. However, what I am looking for is some help in finding a decent lender, not the usual, boring and rather obvious and unhelpful arrogant advice that you have given me above. I don't need your advice on what not to do or do as a long term plan, I can get that anywhere, and am well aware of debt problems and how to avoid them.

I am in a temporary situation where a small loan could help, that is all. If you or anybody else can assist me with the name of a suitable lender then please do, if not, then kindly keep your opinions of how I should run my finances to yourself.

You failed to mention the equity I have in my house and the fact that 99% of my payments are always on timel. Surely those count for something? If I wanted the kind of advice you have given then I could get it from my 10 year old neice. Stop being so high and mighty and give me a suitable lender if you're so knowledgeable in these matters! If not, then kindly shut up and allow me to find one.

I wrote this thread in the hope that there might be some reasonable and intelligent people on this site who may be able to recommend lenders for me, not to be dragged over the coals for what I should have done!

So please, if you can't give me a suitable lender then please don't respond.

Thank you

Craig

Tixy

Nobody can recommend a suitable lender to given the information you have told us about your finances - because there are no lenders will lend you £3k - £4k at the moment.

The equity in your house is irrelevant when looking at unsecured loans - lenders are primarily interested in your perceived ability to repay based on your income and existing debts. Banks are not much more responsible in their lending and won't risk their funds anywhere near as easily as in the past. To them you already will appear to be in a debt stress situation.

hatebanksalot

Tixy wrote: »

First stop filling in your details on websites - do not sign up to any loans online or loan brokers, do not sign up to a commercial DMP company that contacts you (if a DMP is the right thing for you then go to one of the charities). Don't go for a loan with a guarantor (even if you can find a guarantor they would be better to take out a loan in their name and loan the money to you).

Right so you are self-employed and your sales are £38k? and a homeowner? What is your net profit before tax? that is your income and the relevant figure to anyone looking to lend you money.

I'd guess that its probably not more than £25k and you currently already owe £15k, in which case any lender will consider you already have too much debt compared to your income.


If you've recently maxed out your cards and your own bank won't lend to you then I would think you have little chance of securing an additional loan from anywhere. You've already said you are barely getting enough money to pay your debts and living expenses - which would imply you don't have anything left to make repayments to a new loan.

I think you need to rethink - instead of trying to get another loan on top of your existing debts I would look instead to see how you can manage your finances until you get through to April. Maybe head over to the debt free wannabe board to get some advice and suggestions on reducing your living costs to see you through this period.

Thanks for that Tixy. You've looked at my situation rationally and with common sense. I agree that my finances aren't perfect, but I don't think they're all that bad either.


I would be very happy not to get a loan, however that will mean I cannot make some of my payments next February and March, resulting in my credit rating plumetting, which I am trying to avoid. If more work comes in then great, I will probably be able to get through to April without getting a loan.


The bottom line is that if the work situaton stays the same for the next few months then there will be certain months where I simply will not have the money coming in to match what is going out. A small short term loan is the obvious answer to me.


I have spent years trying to get out of debt and basically curb my spending. I have and am succeeding, and it is a shame that I am stumbling now when so close to the finishing tape. I am no stranger to debt and believe me know exactly what to do in an ideal world. This is of course NOT an ideal world, hence my thread. If it wasn't for the fact that missed payments will effect my credit rating then I wouldn't give a damn, I'd just pay the remaining debts of in my own time and what I could afford.


Thanks for your advice


Craig

opinions4u

hatebanksalot wrote: »

I appreciate you reading my post and taking time to reply. However, what I am looking for is some help in finding a decent lender, not the usual, boring and rather obvious and unhelpful arrogant advice that you have given me above.

I'm sorry if you find it unhelpful. Boring it might be. Obvious? Well not to you it seems.

My post is a very clear explanation to you of why you are struggling to get credit. It explained, from a lender's point of view, what the concerns about letting you have even more credit are.

You sound a bit like Greece. Spending more than you can afford and looking to borrow more again and again to tide you over. In the end they've ended up in some extreme form of DMP.

I don't need your advice on what not to do or do as a long term plan, I can get that anywhere, and am well aware of debt problems and how to avoid them.

Borrowing more when struggling with debt is rarely a sustainable solution.

If you or anybody else can assist me with the name of a suitable lender then please do, if not, then kindly keep your opinions of how I should run my finances to yourself.

I doubt anybody can find you a mainstream lender. Based on this criteria you shouldn't have a single reply to your post.

You failed to mention the equity I have in my house and the fact that 99% of my payments are always on time.

Equity means nothing for an unsecured loan. Lenders have limited funds. They will cherry pick the best possible applicants. Somebody with missed payments is not the best possible applicant. You have missed 2 payments in the last 2 years. Others have never paid anything late in their entire lives.

If I wanted the kind of advice you have given then I could get it from my 10 year old neice.

Have you asked her to identify a lender for you then?

Stop being so high and mighty and give me a suitable lender if you're so knowledgeable in these matters! If not, then kindly shut up and allow me to find one.

I'm not being high and mighty. I'm painting you a clear picture as to why lenders don't want to lend to you. There's absolutely no point stamping your feet and demanding that people give you a suitable lender. You might get some joy with a portfolio of payday loans over the next few months. You'll end up ruined financially as a result, but they may lend to you now.

I wrote this thread in the hope that there might be some reasonable and intelligent people on this site who may be able to recommend lenders for me, not to be dragged over the coals for what I should have done!

I didn't drag you over the coals. I explained why credit is difficult to come by for somebody in your situation.

The truth hurts. You're in a mess. You sound a little desperate. And if you do manage to obtain credit there's a reasonable chance it will push you in to the financial abyss.

You are basically saying "lend me some money because I won't be able to afford my bills in 3 months time". It's not exactly a pretty picture for a reputable lender to take on.

Peelerfart

Is it to radical a suggestion that,if the self emplyed life isn't working for you at the minute, then perhaps you could seek other work to tide you over?

CHR15

I'm struggling to grasp why you are focussed on your home equity.

Your current poor position has developed over MANY years. £60k over the last 10 years!! reducing that to £15k is admirable but you are a very long way from safety.

Paying 99% of debts on time is mentioned as if it is a positive action, it is far from positive, it's a complete negative and has eradicated any option of a sensible loan.

Wishing for a loan because you can foresee an inability to maintain your current commitments has disaster written all over it. The next step is looking for another loan to make the payments on the first one.

Your credit rating has already plummeted, you are best advised to weather the storm, take on a part time job and work through it.

Cutting back and selling stuff is the best option, along with cancelling any plans for expensive Xmas purchases.

In your position, swallowing the equity with a Secured Loan has a REAL danger spiralling out of control. NEVER Secure Unsecured debt.